asked the Minister for Finance if he will make a statement on the steps which he has taken or proposes to take to ensure that foreign firms operating in Ireland reinvest their profits in job creation in Ireland; the success which his policy in this regard has achieved; and if he will indicate the latest available figures assessing the level of repatriated profits by foreign firms.
Written Answers. - Job Creation Measures.
15.
The Government have taken steps to ensure that the industrial development agencies actively encourage foreign firms to reinvest profits made here in further job creation projects. In 1988, 58 State-backed expansion projects are being undertaken in electronics, engineering, pharmaceuticals and healthcare by foreign companies located in Ireland. These companies are, between them, committed to creating some 3,600 new jobs by 1990 through these expansions. Also, through the National Linkage Programme, an additional IR£130 million worth of business has flowed to Irish companies from contracts placed with the major multinationals here since the programme's inception in 1986. I might mention that in 1987 overseas industry, both start-ups and expansions, contributed some 4,500 new jobs.
As a further incentive to foreign firms to retain profits in Ireland the Government introduced in July 1987, a scheme for the issuance of tax-exempt securities to eligible foreign companies under section 69 of the Finance Act, 1985. At end-December 1987 some IR£56 million worth of profits were invested in these securities. By end-September 1988 this figure had more than doubled to IR£113 million.
Finally, as to the extent of profit outflows, data for repatriated profits are not available separately. They are included in the component "profits, dividends, royalties etc." in the published balance of international payments statement. On 18 May 1988 I indicated to Deputies Howlin and Spring the level of outflows of profits, dividends and royalities for the period 1980-1987. The latest available figure for this component is IR £376 million for the first quarter of 1988.